The Disruptive Force of Disruption

Victor Milligan

Digital disruption is a fairly well understood dynamic: new entrant uses technology in new ways to upend existing business models and disrupt markets. In other words, digital disruption is a distinct force with a distinct life span that is mostly external to traditional markets and businesses.

But what if it is more than that? What if it is the canary in the coal mine representing the first signals of a shift in our economy and society? Consider the following:

  • 7% of jobs will exit the economy due to automation even if one considers the jobs created specifically by automation. Without the creation of different products or markets (think of the app economy), automation can cause a major shock to developed economies.
  • We are already seeing early indications of how high-performing, highly liquid platforms (think Facebook) can extend services and experiences into different industries (e.g. banking and peer-to-peer lending) to blur or pummel traditional industry lines and norms.
  • The next step in Uber is self-driving cars which are moving from a cool idea to a reality – and will cause duress or change in automotive, transportation, and insurance markets (let alone public safety norms).
  • Artificial intelligence offers up the opportunity to change the health of populations, changing life expectancy, the very nature of diagnostic, surgical, and hospital care, and the economics of health insurance.
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Bosch Connected World 2017 – Lessons From IoT Practitioners

Dan Bieler

With Paul Miller

In March 2017, Bosch hosted its annual internet-of-things (IoT) conference, Bosch Connected World (BCW), in Berlin. Since last year, the event has doubled in size, attracting 2,500 attendees from businesses and vendors. This jump reflects the growing interest in IoT. The number of attendees, however, also highlights the relative immaturity of IoT compared with bigger technology themes. Despite being smaller than events such as GE’s Minds + Machines or Mobile World Congress, BCW has established itself as a premier IoT event, as it has a very distinct “IoT practitioner” feel to it. We took away some key observations for IoT practitioners from the event:

  • To succeed in IoT, you must build and participate in open ecosystems. No vendor or end user can plan, build, and run end-to-end IoT operations that address the entire customer life cycle. This message comes through loud and clear at all the IoT events that we attend, be it IBM’s Genius of Things or GE’s Minds + Machines, and it was repeated by all the BCW speakers. The notion of coopetition was tangible, with Bosch emphasizing its partnerships with IBM, Software AG, Amazon, GE, SAP, and many more. Also noticeable was that all ecosystem participants are grappling with what it means for the shape of their business and their relationship with the customer.
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Google Drives Into The Business Content Services Segment of ECM

Cheryl McKinnon

Several Forrester colleagues and I attended the Google Next conference earlier this month, an event showcasing the Google Cloud Platform portfolio. One message, however, was distinctly NOT cloudy: Google is aiming at the enterprise market. And that includes your enterprise content.

 

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Make Omnichannel A Cornerstone Of Your Digital Transformation – The Telco Angle

Dan Bieler

Source: Forrester, "Make Omnichannel A Cornerstone Of Your Telecom Digital Transformation"

Poor customer experiences remain the Achilles’ heel of telcos’ digital transformation efforts. We live in the age of the customer, and today’s telco customer has expectations that far exceed the traditional standard of telco customer service. A random search on Trustpilot for customer satisfaction with telcos in various countries shows widespread dissatisfaction.

Offering customers seamless omnichannel experiences is critical for telcos’ digital transformation efforts. Today, customers expect to use a variety of digital touchpoints. This omnichannel approach affects telcos’ customer engagement activities at every stage of the customer life cycle, yet many telcos are still struggling to meet their customers’ rising expectations for coherent end-to-end customer engagement. This matters because omnichannel:

  • Is central to telcos’ customer experience initiatives. Customers do not care about channels. They want to have great experiences irrespective of how they engage with telcos.
  • Is more of a cultural transformation than a technology project. Omnichannel solutions require a telco to think about the customer journey from the perspective of the customer. This is a radical break with the past.
  • Opens opportunities for telcos to act as third-party service brokers. Omnichannel will empower telcos to act as service brokers for third parties if they can align their big data, content, and knowledge management strategies.
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A Spring Break Conversation Topic With Your College Kid

Eveline Oehrlich

I don’t know about you, but this spring break is different in my family. My daughter, who has almost finished her first year at a liberal-arts college, came back for spring break with the big question “Mom, what major should I choose?” Of course, as an analyst in technology and — not to brag, but as a professional who has had many roles in IT (programmer, systems administrator, and computer and information systems analyst — my first initial thought was to suggest that she look into computer information systems or computer science. She has the ability; she is an excellent STEM student. So I told her that I would do some research and get back to her.

Here is what I found: According to the United States Bureau Of Labor Statistics, the employment of computer and information technology occupations is projected to grow 12% from 2014 to 2024, which is faster than the average (8%) for all occupations. I quickly put together a table summarizing the majority of professions and found the following:

  • The highest-growth jobs in computer and information technology are in designing solutions and systems helping organizations to operate more efficiently and effectively (computer systems analysts), with a 21% growth rate.
  • The second-highest growth is in jobs to address specific topics, such as information security analyst (18%), computer support specialist (12%), and software developer (17%).
  • Medium growth rates are in jobs that design, build, and support specific technologies, such as computer network architects (9%) and computer systems administrators (8%).
  • Programming jobs, including computer programmers, are declining (–8%); hardware engineering jobs are growing slowly (3%).
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Aprimo’s Acquisition Of ADAM Software Signals Market Consolidation

Nick Barber
Marketing resource management (MRM) vendor Aprimo snatched up ADAM Software, which bolsters Aprimo’s digital asset management (DAM) capabilities and reinforces the consolidation and convergence that we predicted. 
 
There are a lot of small DAM vendors, but there has been a move to consolidate. Specifically, the capabilities of MRM, DAM, and content marketing platforms (CMP) continue to blur. MRM vendors like Aprimo help marketers assign tasks, track resources, budget, and review materials. But they stop short of organizing large libraries of content, integrating with upstream creative workflows, and delivering content downstream. The clear benefit of this merge is that now marketers will have one solution across the entire content lifecycle. 
 
Other large vendors in the market have taken a similar approach. Adobe has built out its offering to include DAM, web content management (WCM), analytics and other capabilities. Multinational conglomerate Danaher purchased MediaBeacon to merge under product-packaging software vendor Esko. Shutterstock bought WebDAM to give Shutterstock a viable story for stock image management.
 
ADAM’s purchase comes as no surprise. Their strength in DAM, noted in our Forrester Wave, and relatively small size made them an attractive acquisition target. 
 
What does Aprimo’s acquisition of ADAM mean for the market?
 
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Sysadmins: You're All Developers Now

Chris Gardner
In a past life I was a system administrator, or "sysadmin". I enjoyed it, but even in those halcyon days of remoting into servers and driving to the office at 2 AM (hoping the server room wasn't on fire), I knew I had a limited shelf life. It wasn't until years later that I fully understood why:
 
Administrators are babysitters. The era of tech babysitters is over.
 
In the age of the customer, admins need to be just as dynamic as their developer brethren. That means a hard shift to software-defined infrastructure. It also means using the same tools and processes that accelerate business technology.
 
In other words, you need to become a developer.
 
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Do You Have An Opinion On How Digital Is Changing Business?

Nigel Fenwick

Do you have an opinion on how technology is changing your business?

As you likely know, each year we conduct in-depth business leader research to help identify trends across industries. This year we are once again partnering with executive search firm Odgers Berndtson, reaching out to senior business executives around the world for their perspectives on how digital is changing their business.

We're also reaching out to a wider audience through social media to broaden the perspectives gathered in this study. No matter what your perspective, no matter what your role – CEO, CMO, CIO, Business leader – if you're in senior management in a medium or large enterprise, we'd like to hear from you.

To make your opinion count, simply click the link below to begin the confidential online survey.
Please note: while the survey has been designed to complete on any device, including mobile phones, you must finish the survey using the same device from which you begin by clicking this link: http://forr.com/digitalsurvey2017. All responses are confidential.

Here's a selection of blog posts from this stream of research:

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Platforms Are The Foundation For New Value Creation

Dan Bieler

While a lot has been written about consumer-facing platforms like Facebook and Uber, the platform impact on business-to-business relationships has not been as extensively investigated. However, these “business platform models” are transforming the way how traditional businesses create value. Business platforms will reorganize a wide variety of markets, work arrangements, and ultimately value creation and capture.

Business platforms push productivity improvements beyond automation activities. The real value creation now comes from analyzing data. These platform dynamics force every business to rethink its approach to innovation, marketing, sales, product development, delivery, and customer engagement. Business and technology leaders need to prepare to platform dynamics for several reasons:

  • Platforms change customer behavior and how businesses interact with customers. Business platforms will trigger radical changes to how we work, engage with customers, create value, and compete for the resulting profits. These business platforms offer companies fast access to scalable expertise at transparent cost and drive the much needed agility to quickly adjust customer experiences to changing requirements.
  • Business platform value creation centers on information gathering, sharing, and analyzing. Platforms focus on information exchange and provide an easier, more transparent way to access, analyze, and share this information. Business platform owners are developing power that may be more influential than that of the actual factory owners. But business platform owners do not have to own all factors of production; they tap into the expertise of platform participants.
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The Top Emerging Technologies For Digital Predators

Nigel Fenwick

If you’ve been following my research, you know I like to divide the business world into three categories of company:

  • Digital Predators successfully use emerging digital technologies to gain market share and/or displace traditional incumbent companies (e.g., Amazon, Lyft, Priceline, Airbnb, Netflix).
  • Digital Transformers evolve a traditional business to take advantage of emerging technologies, creating new sources of value for customers and opening up new competitive strategies (e.g., Burberry, Nestlé, L’Oréal, Unilever, USAA, Ford, Delta).
  • Digital Dinosaurs struggle to leave behind their old business model. These companies are typically slow to change because they must defend large P&Ls, or they have a near monopoly position, or they simply don’t see the opportunity/threat (e.g., many retailers, taxi companies, manufacturing firms, legal firms, recruiters, construction firms).
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